The Impacts of On- The Impacts of On-the-Job Training on Job Training on Job Training on Labor Market Outcomes Labor Market OutcomesDual Training Dual Training Dual Training System in the Philippines

Abstract

This paper estimates the impacts of the Philippine Dual Training System (DTS) on labor market outcomes using a recent survey that tracked graduates from DTS and non-DTS programs provided by vocational training institutes. DTS programs partner with local employers to combine on-the-job training (OJT) with the conventional school- or center-based instructions, while non-DTS programs consist solely of the latter. The estimation results in Fuzzy Regression Discontinuity Design show a significantly positive impact on the most-recent monthly earnings. Quantitatively, the impact on the most-recent monthly earnings attributable to DTS is large, that is, more than 75% increase relative to the average non-DTS program graduate earnings, and the impact significantly increases with the OJT intensity, measured by the number of hours of in-company training and work. The above results indicate that the OJT part of DTS is the essential contributor to higher earnings of the DTS graduates.